Metal Energy Corp (TSX-V:MERG, OTCQB:MEEEF) told investors it has been selected to receive up to $200,000 from the Ontario Junior Exploration Program (OJEP), sending its shares higher on Thursday.
The battery metal exploration company said the non-dilutive grant is targeted at advancing exploration efforts at its SourceRock project, Ontario’s first lithium brine project near Thunder Bay in the northwest of the province.
“The OJEP funds leverage our recently completed financing, and we are days away from initiating our permitted and fully funded drill program,” Metal Energy CEO James Sykes commented in a statement.
“This funding demonstrates Ontario's commitment to developing a critical minerals strategy with the junior mining sector. We're happy SourceRock was recognized for its potential to be a key project within that strategy.”
Metal Energy noted that SourceRock is a drill-ready project with an exploration permit from the Ontario Ministry of Mines for up to 20 drill pads. Historic drilling and geophysical data have identified saline brine drill targets, however, the brines have never been tested for lithium or other elements.
"Our government is committed to building a made-in-Ontario supply chain for electric vehicles by connecting critical minerals producers in the north with the manufacturing might in the south,” Ontario Minister of Mines George Pirie said.
"But it all starts with mining and there is no mining without exploration, which is why through programs like the Ontario Junior Exploration Program, our government is proud to support early exploration ventures like Metal Energy's lithium brine project."
Metal Energy said it remains engaged with local Indigenous groups, communities, and stakeholders, and anticipates a drill program to commence in early January 2024.
Its shares were up 18% at C$0.065 by noon in Toronto.
Metal Energy is a battery metal exploration company with two projects in politically stable Canadian jurisdictions; Manibridge (nickel-copper-cobalt-platinum group elements) in Manitoba, and SourceRock (lithium-sodium-potassium) in Ontario.
~Updated with share price movement~